Change 5: Transferring a defined benefit pension (e.g. final salary)

This week we have been detailing the pension changes due to come in from April 2015.

Change 5: Transferring a defined benefit pension (e.g. final salary)

What is changing:

Most people with a defined benefit (e.g. final salary) pension will be able to take advantage of the new rules and make unlimited withdrawals. To do so, they will have to transfer to a defined contribution pension (e.g. a SIPP). But as you could lose very valuable benefits, you will have to receive appropriate independent advice first.

Who will be affected:

Anybody with a defined benefit pension, wishing to take advantage of the increased flexibility after April 2015. It will no longer be possible to transfer from most public sector pension schemes.

We will detail another change tomorrow!
If you have any queries in relation to these changes or need any further guidance, please do not hesitate to contact us on 01772 825755.

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